Negative interest rates started with central banks charging commercial banks for keeping excess reserves at the central bank.
The U.S. like Japan is coming off two enormous financial bubbles. The Internet stock market bubble of 1999, and the housing bubble of 2006. It also has high levels of government debt and near-zero interest rates.
Consumer confidence is skyrocketing as jobs are plenty, and President Trump becomes the economy’s biggest cheerleader.
China stopping buying our debt is what many people fear, but what happens when the biggest holder of our debt the Fed ended buying.
Is the Reduction of the Fed’s Balance Sheet a Ticking Time Bomb? Two Financial Heavyweights Weigh In
Fed’s balance sheet reduction two financial heavyweights Paul Sheard and Urjit Patel discuss the risk of reducing it.